Briefly explain the benefits of a flat tax.
What will be an ideal response?
The advantages of the flat tax are that all of the traditional exemptions, like entertainment deductions, mortgage interest deductions, business travel expenses, and charitable contribution deductions, would no longer be allowed, which would eliminate the possibilities of abuses and misrepresentations that go with tax deductions. Taxpayers could fill out tax returns in the way they did in the old days, in a space about the size of a postcard. Advocates argue that the government could collect the same amount of tax revenues, but the tax would be much more efficient, as many productive resources would be released from looking for tax loopholes to doing something productive from society’s standpoint.
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In a repeated prisoner's dilemma, players:
A. always play their dominant strategy. B. never learn to play their dominant strategies. C. can sustain cooperation by playing their dominant strategy. D. can sustain cooperation by employing a tit-for-tat strategy.
The Eurodollar market is an alternative way for __________ to lend or borrow
A) governments B) corporations C) banks D) pension plans
In a monopolistically competitive industry, a firm's demand curve also represent its
a. marginal revenue. b. marginal cost. c. average revenue. d. profit.
A circular-flow diagram is a model that
a. helps to explain how participants in the economy interact with one another.
b. helps to explain how the economy is organized.
c. incorporates all aspects of the real economy.
d. Both (a) and (b) are correct.